basics of excise

[Rakesh Kaushik]

why branded software is taken goods and tailor made software taken as service

The reason why branded software is taken as goods takes the same case as any product that is manufactured on a mass basis and sold off the shelves of any store. they take the nature of goods thereby.

Whereas, Tailor made software has to be prepared according to the preferences and the designs of the client. thus, the manufacturers are essentially performing the service of manufacturing according to the needs specified. thus, it is a service.

[CASeetharaman KC]

Tailor made software only caters to the requirement of a particular client and cannot be put up on the shelf for sale, whereas branded software like "windows" for example is totally user friendly and can be sold as a product. This is the difference

AI Summary

Classification of software: branded software treated as goods while tailor-made software treated as a service under excise principles.
Classification of software depends on production and marketability: branded or packaged software produced for mass distribution and sold off the shelf is treated as goods due to its standardized, marketable character, whereas bespoke or tailor-made software created to client specifications is treated as a service because it involves performing customized work rather than producing a stock product.